NBFC Loan: Know what it is, its benefits and more

Updated on: 18 Sep 2024

An NBFC loan is a quick solution to get the credit you need to cover personal expenses. NBFCs or Non-Banking Financial Companies are growing in popularity, thanks to fintech advancements and online lending platforms. These financial companies are also making credit more accessible to Indians, thereby promoting financial inclusion.

Considering this, there are many advantages to applying for a personal loan from NBFCs. One of the most significant ones is that you can qualify for credit with ease and get the funds in your bank account in no time.

Read on to know the benefits of choosing an NBFC for a personal loan, their interest rates and more.

Pros of taking an NBFC loan

Quick digital protocols

Banks usually need to follow the guidelines laid out by the Reserve Bank of India. Due to stringent eligibility criteria and risk checks, the loan approval and disbursal process can take time. NBFCs have more flexibility, so they can approve your loan faster with few formalities to adhere to.

Easy to apply

Most NBFCs allow you to take a loan 100% online through their websites or mobile apps. This makes the process faster and easier.

Low or no Credit Score needed

When you apply for a personal loan from a bank, a good credit score and history are non-negotiable. However, one of the key features of getting an NBFC loan is that you can get funds even if you have no credit history or even when you have a poor credit score.

Simple documentation

Compared to banks, NBFCs require fewer documents to apply for a personal loan. You can get your KYC verification done online and apply hassle-free with basic income documents.

Speedy disbursal

Many NBFCs offer personal loans in less than 24 hours. Existing customers can even enjoy instant disbursal in minutes.

Apply without collateral

If you don’t have collateral to pledge, then applying to an NBFC for a personal is an excellent option. You can easily get up to ₹ 10 lakhs and more without risking your valuable assets.

Eligibility criteria for a loan from NBFCs

Planning to apply for an NBFC loan online? Check if you qualify first. Here are the general terms that most NBFCs set, but ensure you check the specific criteria of the NBFC you go for.

All Indian residents can apply for an NBFC loan
You must be at least 22 years of age to apply for an NBFC loan
All salaried employees can apply for a minimum salary of ₹20,000
You must have a minimum work experience of at least one year

Documents required for an NBFC Instant Loan

To get a loan from NBFCs, you will need to prove your eligibility with the following documents.

Proof of Age and Identity: Aadhaar card, PAN card, voter ID card, driving license, etc.
Proof of Address: Aadhaar card, voter ID card, rent agreement, utility bills, passport, etc.
Proof of employment and income: Salary slips, bank statements, ITRs, etc.

As you can see, choosing an NBFC for a personal loan has many advantages, especially when you need urgent financing. While the interest rate may be a little higher than banks, you can get a good deal by meeting the lender’s eligibility criteria, especially those related to income.

So, if you want to get an instant personal loan, don’t let the strict eligibility terms of a bank stop you. Fibe is among the fastest-growing digital lending companies and you can get a loan of up to ₹5 lakhs on the Fibe Personal Loan App. You can also register on the website and get a quick and easy loan in minutes.

FAQs on NBFC Personal Loans in India

Who is eligible for a loan from NBFC?

To apply for an NBFC instant loan, you must be 22-58 years old, a resident of India and a salaried employee with around ₹20,000 of in-hand salary. You must also be employed for a minimum of 1 year to apply for a loan from NBFCs.

Can NBFCs give personal loans?

Yes. When you apply with an NBFC for a personal loan, you may have to pay higher interest rates than banks. However, the eligibility criteria are easier to meet and you can get financing even if you have a low credit score.

Who is eligible for an NBFC loan in India?

All Indian residents between 22 and 58 years of age are eligible. You must also meet the required income and employment eligibility terms, which differ from NBFC to NBFC.